What is network or pyramid marketing? A comprehensive explanation with advantages and disadvantages

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  • January 7, 2024
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There is no doubt that poverty and unemployment provide fertile ground for fraudsters, and a quick tour at a network marketing company conference confirms this. The sample you encounter there often comes from low-income groups such as students and young employees, and the common dream among them is achieving financial independence or… Diversify sources of income. This inconsistency leads us to ask: Does network marketing really provide good job opportunities? Or is it just a way to exploit gullible people and beginners in fraudulent schemes? We will discuss this given and additional information in this professional article, and we will also present the best reliable alternatives for making money from the Internet that will save you a lot of wasted time.

What is network or pyramid marketing? A comprehensive explanation with advantages and disadvantages

Our team has prepared a comprehensive guide to explain network marketing in detail, along with its advantages and disadvantages, to help beginners understand the truth and mechanism of how fraudulent pyramid marketing companies work.

What is network marketing? Advantages and disadvantages

Network or pyramid marketing is a direct, multi-level selling system used by companies to sell their products through partners, in order to avoid investing in expensive stores or retail outlets. Workers in pyramid marketing companies are not employees but independent partners, so profits and incentives vary according to each level. Also, all marketing stages are the responsibility of the partners, who are classified into several levels according to seniority, the volume of sales achieved and the number of individuals joining the company through them. The idea of ​​the network marketing system is not new today, but only an extension of what is called Ponzi chains Fraud that struck financial exchanges in the early twentieth century. At that time, businessmen were persuaded to partner with investment companies in exchange for fantastic returns, while in reality they were paid from the deposits of new investors in the company.

Currently, this method has been developed by network marketing companies in a malicious way and is compatible with the laws, so no court will be able to compensate you if you become a victim or suffer heavy losses. For example, you rise DXN company or QNET By selling poor quality products at imaginary and exaggerated amounts to marketers (partners), they are also blackmailed by ordering large quantities despite the lack of a buyer base or the lowering of the level of classification and incentives offered. You will not notice this as a beginner during the initial presentations or the first months, but you will encounter it when you are pressured by the company or the marketer with the referral to order more products without needing them. Personally, I advise you to avoid working in pyramid marketing because it is a scam, and it will cause you to enter a never-ending cycle of exploitation and exert effort without achieving results. I also invite you to allocate ten minutes of your time to read this wonderful article about The best ways to profit from the InternetWhich will open your eyes to the most prominent opportunities available to work online, even without having previous experience in the field.

Advantages

  • Reducing the marketing budget of companies

Defects

  • Loss of invested funds
  • Wasting time without result
  • Loss of trust of relatives and friends
  • Participation in fraudulent schemes

The most important questions about network marketing?

In this paragraph, we will try to answer the most prominent questions, which will help beginners uncover the facts and decipher the mystery surrounding network marketing away from the fallacies of fraudulent marketers.

What is the difference between pyramid and network marketing?

In short, network marketing is just another term for pyramid marketing, so there are no technical differences between them in the mechanism of operation or the method of making profits. The only observation is that the new sellers in network marketing work for the benefit of the founders at the center, while in pyramid marketing the new referrals work for the benefit of the top of the pyramid. Also, the name network or multi-level marketing is used by fraudulent companies to camouflage their activity only, as most countries in the world legally prohibit pyramid marketing. I would also like to remind you that working from home while ensuring a decent life is possible, provided that the impact is invested in someone’s education Profitable electronic projects Which we discussed in detail in a previous guide.

Is network marketing a scam?

Network marketing is definitely a scam, as companies that adopt this type of marketing sell poor quality products at high prices. New members are also misled as partners, when in fact they are the company’s customers and are constantly pressured to buy more products despite the lack of new orders from customers. Latest statistics achieved Consumer Awareness Institute Shocking, which indicates that 99% of marketers lose their money when working with network marketing companies. For reference, the institute operates under the supervision of the US Federal Trade Commission (FTCHis evaluation is reliable and indicates that network marketing is merely a camouflage for fraudulent operations targeting those dreaming of getting rich quickly. If you are planning to make additional income from working online, I direct you to read this guide about The best guaranteed sites for making money online Which has great credibility.

The truth about network or pyramid marketing

Is network marketing halal or haram?

The Sharia ruling on network or pyramid marketing is clear and absolutely forbidden, due to the illegitimate practices it is marred by, such as deception, deception, gambling, and unlawfully consuming people’s money. Also, those working in network marketing are only concerned with making profit, which can only be achieved by promoting bad products at a high price and under false slogans that have no connection to reality. Also, the danger of pyramid marketing lies in losing the trust of relatives and friends, as companies often ask beginners to target their close circles to expand the referral base. In reality, most people tend to doubt any advertisement that promises to get rich quickly online, but they are more weak and less resistant when they are convinced of the feasibility of investing by a close person such as family members or friends.

Conclusion

As they say, stupidity has no religion, especially if it is linked to a template that combines quick wealth and career independence in the easiest ways. Also the spread of work culture Freelancing sites Social media networks stimulate pyramid marketing companies, especially as they promise new subscribers to work from home for a few hours in exchange for huge profits. Changing lifestyles have prompted these companies to develop the advertising and fraudulent methods they use, which results in a greater number of victims than in the past. Personally, I do not have magic keys to stop this hideous exploitation, but I tried as much as possible to raise awareness of the dangers of pyramid marketing, which many people are unaware of. I hope my article covered all the negative aspects, which unfortunately are not pointed out by marketers or misleading advertising campaigns. Finally, do not hesitate to encourage and support the site team by sharing the article with friends, and we are also ready to answer all your questions in the comments section below.

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